Lennar, one of America’s biggest homebuilders, announced fiscal Q3 financial results that were stronger than expected.
Earnings came in at $US0.54 per share, which was much higher than the $0.45 expected by analysts.
This is an encouraging sign as tighter financial conditions have come with rising mortgage rates. Bank of America, Wells Fargo, and most recently Citi have announced major layoffs in their mortgage arms due to shrinking business.
“We continue to see long-term fundamental demand in the market driven by the significant shortfall of new single-family and multi-family homes built over the last five years,” said Lennar CEO Stuart Miller. “While there may be bumps along the road that may impact the short-term pace of the recovery, the long-term outlook for our business remains extremely bright.”
For now, the numbers continue to be staggering, From Lennar:
- Deliveries of 4,990 homes — up 37%
- New orders of 4,785 homes — up 14%; New orders dollar value of $US1.5 billion — up 32%
- Cancellation rate of 18%
- Backlog of 5,958 homes — up 32%; backlog dollar value of $US1.9 billion — up 53%
- Revenues of $US1.6 billion — up 46%
Later this morning, we’ll get new U.S. housing data via the S&P/Case-Shiller home price index.